Shoppers enter a Michaels store in Miami, Florida.
Scott McIntyre | Bloomberg | Getty Images
Check out the companies that are making headlines in mid-day trading.
Rocket Companies – The online mortgage company’s stock fell nearly 20% after a surprise rally in the previous session as analysts cautioned caution on increased speculative trading in stocks. The stock rose more than 70% on Tuesday for its best day ever with no apparent news. Rocket is one of the most shortened names of hedge funds, which may have made it attractive to the Reddit trading group.
Lyft – Shares in the ride-sharing center rose more than 8% after the company said the last week of February was the best by volume since the pandemic lockdown began. Lyft revised its adjusted EBITDA loss forecast for the first quarter due to an increase in driver volume last month. JPMorgan also reiterated its call for a top pick for the stock, noting that it was bullish on the company as the coronavirus lockdown wears off.
Michaels – The artisan saw his stake jump 22% after announcing on Wednesday that it would be privatized as part of a $ 3.3 billion deal with Apollo Global Management. Apollo will purchase all of Michaels’ outstanding shares in a tender offer for $ 22 per share. This represents a premium of 47% over the closing price on Friday, the day before speculation about the deal was published in the media. The companies value the transaction at $ 5 billion.
Norwegian Cruise Line, American Airlines – A number of classic reopening games picked up after President Joe Biden said the U.S. will have enough coronavirus vaccines by the end of May to vaccinate every adult in the nation. American Airlines grew more than 3%, while Carnival and Norwegian Cruise Line grew 6% and more than 7%, respectively.
Ambarella – The semiconductor company’s stock rose more than 6% after Ambarella’s fourth quarter earnings. The company had revenues of $ 62.1 million for the period, which FactSet estimates exceeded the expected $ 58.1 million. Ambarella said demand for its products has accelerated over the past year, and more than 175 individual customers have purchased engineering parts or development systems.
Wendy’s – Restaurant stocks were down more than 5% after Wendy’s missed fourth quarter income estimates. The company reported earnings per share of 17 cents on sales of $ 474 million. Analysts polled by Refinitiv had estimated 18 cents per share and a turnover of 476 million US dollars.
Nordstrom – The retailer’s shares fell roughly 4%, despite beating Wall Street’s estimates for the fourth quarter at the top and bottom. However, the company ended the quarter with inventory levels above average, leading some analysts to raise short-term concerns about margins.
FuboTV – The streaming service’s shares were down 13% after reporting a large loss last quarter. FuboTV lost $ 2.47 per share, and it’s unclear whether that was on par with analyst estimates. However, revenue of $ 105.1 million was above the forecast of $ 95.1 million, according to Refinitiv.
Dollar Tree – The discounter’s stocks rose more than 4% after Dollar Tree beat earnings estimates for the fourth quarter. The company made $ 2.13 per share, compared to the street consensus of $ 2.11. However, sales fell short of expectations. The company had sales of $ 6.77 billion, slightly below the analysts surveyed by Refinitiv of $ 6.79 billion.
DraftKings – The sports betting company’s shares rose less than 1% after it announced a partnership with DISH Network to bring DraftKings’ sports betting and fantasy experiences to the Hopper TV platform, with a possible future expansion to include Sling TV and Boost Mobile. DISH Networks’ shares also rose more than 2%.
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